A 34-YEAR-OLD man has been arrested and bailed by police probing the murder of Milly Dowler.

At 6.30am on Friday, the man from Hounslow, west London, was taken in for questioning over the "potential disposal of a red Daewoo Nexia which police had been appealing for as part of the investigation into the murder".

Milly, aged 13, was last seen alive walking to her Walton home on March 21, 2002.

Six months later, mushroom pickers found the remains of her body in a Hampshire field.

Last month, an unofficial police source named 39-year-old Levi Bellfield as the prime suspect in the case after he was convicted of the murders of Amelie Delagrange and Marsha McDonnell and the attempted murder of Kate Sheedy.

"Ongoing work"

Following his conviction, Surrey Police issued a fresh appeal for information about a Daewoo Nexia car, registration N503 GLT, which Bellfield was believed to have had access to at the time of Milly’s murder.

A spokesman for Surrey Police said on Friday: "The arrest has been made as part of ongoing work carried out by the investigation team. The nature of this work cannot be disclosed."

The man was later released on police bail "to return at a later date pending further inquiries".

More than 200 calls have been received following the latest appeal.

A reward of £50,000 is being offered for information leading to the conviction of the person responsible for Milly’s death.

Anyone with information should contact the investigation team on 01483 637637 or Crimestoppers on 0800 555 111.